3/10/20

Bhagirathi Chidh Vidyut Producer Company Limited

Registered Office: Kunsi, New Barsali, Dunda, Uttarkashi, Uttarakhand- 249193, India

AN INTEGRATED PILOT PROJECT AT UTTARKASHI

FOR SUSTAINABLE RURAL LIVELIHOOD AND CARBON NEUTRAL ENERGY

Forest fires - a bane for the lower Himalayan forests

For state of Uttarakhand it means,

annually,
2000-4000 Ha Forest cover destroyed
A major heat event releasing a billion units of
Annual Pine leaf shedding Dense mulch kills fodder heat energy in 4-8 weeks
Destruction of flora and fauna
Food shortage for wild life and increased
conflict with villagers
Huge carbon neutral energy potential- about
1.5 Billion Units/annum
Minimum plough back of INR 6 Billion to rural
collector households if all harvested

Intended controlled fire goes out of control

Source: Indian Express Report, https://indianexpress.com/article/india/uttarakhand-forest-fires-burn-more-than-2000-hectares-of-land-in-2018-cm-trivendra-rawat-reprimands-officials-5188649/

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Reduced economic action leads to urban migration in hill-states

250 Villages Deserted 50% after 2011
Uttarakhand amongst top Pauri Garhwal Urban migration from mountain
states in male migration Almora
200
from rural to urban areas villages is a real socio-economic issue
Male Migration/1000

Tehri Garhw al
150 Uttarkashi Better earning
Pithoragarh
100 Climate impact on agriculture
Champawat
50 Dehradun Education of children
Bageswar
0
Rudraprayag
Creates a negative cycle of decreasing
Meghalay a
Uttarakhand
Kerala

Maharashtra

Assam
Chhatisgarh

Bihar

Manipur
Karnataka

Chamoli rural economy and increasing social

Nainital stress
US Nagar
Valley of Ganga contributes
Haridwar Any sustainable economic activity
to half the deserted villages
0 30 60 90 120 leveraging the rural economy shall
actively address this

An innovative solution that solves for the twin problems of urban-migration and forest fires

Source: (1) Palayan Ayog Report- 2017, Govt of Uttarakhand (2)Patterns and Implications of Rural-Urban Migration in the Uttarakhand Himalaya, India, Vishwambhar Prasad Sati, Annals of Natural Sciences Vol. 2(1), March 2016: 26-37

Interconnected problems..multiple impact

Classical Factors Modern Factors Ecological Damage
Annual Pine Biomass Urbanisation- lure of Long Term Impact Air/Climate
•Climate change
mulch income & education •Increased CO2 and temperature
•Accelerated glacier loss •Lesser Precipitation
•Loss of forest cover
Out migration from •Water scarcity and floods Glaciers/ Rivers
•Accelerated melting of glaciers
mountain village
•Lesser ice accumulation
Death of competing plants Immediate Impact •Dried springs
•Topographical damage
Decreased rural economic •Flood events and silting
•Conflict with wild herbivores
activity •Loss in farming and horticulture Soil/Forest
•Economic loss of forest produce •Soil erosion/Land slides
•Loss of soil nutrients
Survival and increased Less usage of biomass •Reduced jungle cover
density of Chidh Pine /less people to manage it •Loss/ destruction of wild flora
•Loss of habitat/food of wild fauna

Increased Pine Biomass Decreased fodder supply Annual setting of fire Fire goes out of control
on Forest floor Death of livestock by accidental slipping
near village areas 4000 Ha burnt approx

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Pinus Roxburghii- Two Facets of the same coin

Local name: Chidh or Cheer
Habitat
1000-2500 Meters above MSL
Lower and Middle Himalayas
Highlands of Deccan Plateau
Biomass characteristics attractive
Ash: 2-4%
Heat Content: 4500 KCal/ Kg

Potential for Uttarakhand :

Yield volume 1.3 Million MTPA
Net energy 1.5 Billion KWH/Yr
Equivalent power generation capacity - 150
MW

If successful, the total value creation potential for the village community is INR 9 Billion /Annum for Uttarakhand State alone
Source: Pine Needles as Potential Energy Feedstock: Availability in the Central Himalayan State of Uttarakhand, India, L.D. Kala, P.M.V. Subbarao, World Renewable Energy Congress-17, E3S Web of Conferences 23, 04001 (2017)

Nothing new about the idea itself …

Shri Rajnish Jain of Avani Bio Energy, Berinag, Almora
pioneered the idea
Setup a power generation system of 10KWe capacity about a decade
Rajnish Jain

back
The project achieved several successes
Validation of energy production through gasifier technology using
pine straw biomass
Load testing of continuous power production
ABEL’s 10KW pilot project

Successful synchronisation with LT Grid

Product and application development for charcoal by-product
Policy advocacy framework for biomass gasifier based renewable
power and supportive policy announcement

However, two key issues have not been resolved …

1. Continuous power plant operation of 7000 Hrs per annum
2. Scaling up to larger capacities like 125KWe or 240KWe

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Interconnected root causes for the issues faced by ABEL

Remunerative returns for collectors

Stable Supply Chain

Regularity and dependence on the income by collectors

Diseconomy of scale for collection area
Quantity and quality variation in biomass supplied
Strategy for uniform availability round the year

ABEL carried out Untested for 24X7 operation

Technical Issues of Scale

extensive research to Turbo and Aftercooler jamming in engine
understand issues
relating to supply chain Gasifier tar-cleaning performance inadequate
performance. The Manual operations and manpower requirements for fuel
business case study is feeding system
still used in Yale Loose feeding not best for thermal efficiency
Business School
Source: (1) http://workshop1.cases.som.yale.edu/avani/future-challenges/issues-villager-participation, Yale Business School
(2) A Case Study of Electricity Generation from Pine Needles in Rural Uttarakhand, India, Anand Mishra, MBA, Richard Vlosky, Ph.D. Wood-based Energy Goes Global 7 October, 2015

Secret sauce is in building a holistic ecosystem

$ VA Chiller
Revenue $
Salary $ Waste Heat
(20TR)
(Cold Room / CA Store)

4M Safety
$ $
Briquetting RM Storage Power Plant Power Sale Char Briquetting Multiple revenue streams

1 Wk (2X125 KWe) Positive dependencies

(10MTH) (150 KgH)
Active Stock) (1X240KWe) Charcoal
Multiple plough back
mechanisms

Excess Potash Horticulture

Pine Straw Agri Waste Methane (Apple Orchard)
(Green Organics)
(Other Fruits)
(Balloon Bio Gas) Manure Slurry $ $
$
Revenue $
Payout $ Farm Poultry
Kitchen Api Culture
(Piped Gas) (Bird Sale) (Raw Wild Honey)
(Bio Gas Stove) (Egg and Meat) (50-100Kg/HH)

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The Solutions Framework Supplier owned producer company- maximising

Structure
(Ensure Supply Chain Ownership)
(Ensure returns for the Collector)
ownership and returns
Expert directors in the board bring technical and
commercial expertise required
Strategic marketing tie-ups for product development
and marketing

Scale Technology
(Leverage Scale for cost efficiencies) (Proven technology for desired scale)
(Leverage scale for commercials) (Experienced Technology partners)

Fixed cost optimisation -

Maintenance/Spares/Executive Manpower Redundancy Proven IISc technology for tar free gasification
(In revenue streams) Briquetted input side raw material
Larger machine advantages (In equipment, tech package)
Better efficiency numbers
Better flow
Redundancy in revenue streams
Value preservation
More heat to harvest Charcoal and char products
Better stickiness to grid (Sync at 11 KV) Biogas and bio manure Space preservation

Automation in feed/ Smooth flow due input briquetting/ Turbo after Waste heat products Wet process for gas cleaning and effluent handling
cooler stabilises and enhances efficiency Horticulture/Apiculture mechanism
3 Shift operation maximises local income, increases Rural eco tourism
Waste heat recovery for better overall thermal and
community stake Redundancy in membership base due to
commercial efficiency
multiple activities
Better returns, reserves and hence financial
By products of revenue streams Value added output side briquetting of charcoal
robustness
reinforce each other

Key success factors

Project Management
Reliable technology package
Successful project execution and commissioning BCVPL
Timely production, sales, invoicing and payment Eco Tourism/Hosp
Minimal pollution load for water and sound
Bio Gas/Dairy

Horticultiure

Supply Chain Management

Api Culture
Charcoal

Poultry
Power

Plan-B for biomass supply from alternate areas

Future proofing prices and policies
Governance Cold Store
Member relationship and communication
Efficient management of all revenue streams
Governance and contribution of expert directors
Availability of capital grant

Overriding Operational Objective for success

1. Profitable and reliable plant operations- 7000 Hrs/annum, 2. Strategic Marketing of by-products/ancillaries
3. Cover 90-100% Households in membership, 4. Generate stable monthly income of INR 15000 per household

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Technology package needed

Solar
Biomass Drying and Storage Exhaust Gas
Automated handling

Capacity and flow to match production Briquette quality and stability over time
Input Briquetting Energy and space consumption Make Vs Buy from existing capacities

Optimal Gas production- fuel ratio 1.2 Ease of operation and maintenance
Gasifier Optimal Charcoal production- 10 percent Tar cleaning performance/IISc Licensed
Automated fuel feed Effluent and water management
Stable efficient operation Ease of operation and maintenance
Engine Continuous 24X7 operation Water Consumption
No Turbo-Aftercooler jamming Thermal Efficiency

Auxilliaries / Thermoheart engine Water heat exchanger

Waste Heat Harvesting Vapour Absorption Cooling System Auxilliary Solar power
Ability for experimenting with shapes
Charcoal Briquetting Self igniting quick burn variety
Activated carbon pre-processing

Discussions have been initiated with potential technology suppliers in all areas. Projections are after initial cost estimates in all above areas

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Corporate Structure Chairman

Expert Directors
Dr Rajan- Heads CGPL- IISC
Member Directors Expert Directors Bangalore
Constituent Linkages Gasifier Technology expert
1. Chandan Singh
2. Bhagat Singh 1. Dr Rajan
2. Dr Omveer Singh
3. Gopal Singh
3. Ashutosh Mishra
Village 4.
5.
Jagbeer Singh
… 4.
5.
Girish Shivani
Anand Singh (CEO)
Representative of funding partner
Expert on Producer Company

Village Kunsi 6. ….
CE development

Village O
Juguld Corporate Services Unit Operations

Singot Girish Shivani- Founder Yournest

i Purchase Unit Head

Fund
Financial Expert
Maintenance Operator
Central Spares Store Helper
IT & Communication Accounts
Ashutosh Mishra- Founder
Audit-Taxation-Liason Stores
PROACT and SNOWSCAPES

BCVPL
Billing-Accounting Security
Operations Management Expert

Producer Directors •A professional CEO shall be

Proje
CA-
Manish ct appointed
Negi Partn Sample Sample •CEO shall be a member of
er the board
JOL
Janhavi Organics
•Producer directors have
Strategic Partnerships maximum 2 tenures, each of
4 years

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The Topography allows for future expansion opportunities

High Impact area- Most impacted
historically by forest fires
Easy on Command area planning
due to high density of Chidh-pine
forest
Topography helps gravity assist
feeding systems
Similar socio economic conditions
of the villages-hunger for local
income
Proximity to Gangotri National
Highway
Chinyalisaur Airport 1 Hr drive
away

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Key differentiation vis-a-vis “ABEL” model

Business Model and Supply Chain Technical Package

Supplier community ownership and assured annual returns (to Raw Material Feeding System
ensure supply stability) 1. Automated
1. Supplier owned “Producer Company” -can plough back net profit -
2. Briquetted - better flow and thermal efficiency
protected from private investment and hostile take-overs
De-Risk the 3. 10X Bulk density in storage by briquetting
2. Assured supply & income thru quota based incentives
3. Income thru ancillary revenue streams
pilot through Wet Cleaning of Gas
Ancillary revenue streams for “Capital 1. Wet Cleaning process for better tar control

1. Financial stability Grant” 2. Weekly water exchange regimen for effluent cleaning

2. Inclusion of entire community

For Scale-up Engine with Turbo and after cooler operation for stable
Efficiency, automation, Technology power delivery
lessons 1.Clean Gas thru wet cleaning
1. In Collection/Storage/ Gasification/Waste Heat use
2. Fixed Cost efficiency due to larger scale 2.Quarterly cleaning of system for smoother operation

3. New \Value Added products from Charcoal 3.Optimise fuel burn for best tar performance
Structural
4. Expert Directors for technical and management guidance System cost efficiency
solution-
Facilitative regulatory and policy conditions 1.240KWe Systems are largest yet
“Supplier
1. Tariff rate assists breakeven
Owned” - is key 2.Waste heat harvest in fuel drying, Thermoheart, VAC Chilling
2. UPCL Synchronisation point near place of generation application etc
to success
3. Pirul Policy 11KV Synchronisation with grid increases stickiness

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The 5 Year Roadmap

2019-20 2020-21 2021-22 2022-24
Pilot-125 KWe
(Kunsi-Manglisera Village Complex)
(Prototype testing of all key concepts)
Pilot-2X125 KWe
(Kunsi-Manglisera Village Complex)
(Test 240KWe Pilot Concepts)
Successful commissioning, PoC of
business model Location Expansion
Stable Operation Blueprint update- scale up into 2 (Singot Village Complex)
(240KWe Concepts at other location)
Tech package finalisation Unit Operation and billing
Project partner finalisation for scale up Tech package finalisation for single Project replication related Rapid Replication
240KWe Unit learning documentation (Jugaldi and other Villages)
Finalise billing and payment/payout
process Finalise blueprint for command area Final SoP for member
planning and member relationship 8 Units of 240 KWe
Pilots on other revenue streams mobilisation
management for 240 KWe operation Phase 1- 4X240 KWe
IT Backbone and “App” finalisation Final SoP for member
Finalise equipment operation and Phase 2- 4X240 KWe
Draft -Blueprint for Infrastructure, Tech relationship and grievance
Package, Layout, SoPs etc
maintenance plan
handling Optimise base costs
Core nucleus of farmer producers
Finalise waste water and effluent
handling Finalise Unit replication Corporate Resources
blueprint
Common shared services

Expansion plan only for Bhagirathi Valley in the Dunda Forest Range

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Progress so far
Study visit and idea conceptualisation
Detailed Project Report preparation
Producer Company formed- Registered- April-2019
Location-Tariff approval by Govt
Appointment of Board of Directors-strategic partners
Government Approval for PPA
Sample briquettes developed
Opening of current account
PPA Signed
MSME Registration
Funding lined up
Tech Partner agreement Bhagirathi Chidh Vidyut Producer
Project purchase order Company Limited
Registered Office: Kunsi, New Barsali, Dunda, Uttarkashi,
Project Execution-Commissioning Uttarakhand- 249193, India
First Billing-Payment cycle
Stable O&M
Expansion and Scale-up

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Financial projections- 100% Grant Funding

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Funding Requirement

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THANK YOU

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